The economy is under attack!

For some reason nobody seems to have realised that America is under a
greater threat than that from terrorism. By not opening our eyes to
the tough issues soon enough, or in the ignorance we are kept in by
our liberal-agenda media we have missed the greatest threat to our
wellbeing in three generations. Let me explain - it is vital we face
up to this NOW:

The dollar has been the principal global reserve currency since the
early 1970s when the value of America stopped being expressed in how
much gold there was to back up the currency. Kissinger negotiated a
highly beneficial treaty with the Saudis so that all OPEC oil was
traded in dollars alone. No economy can grow or thrive without oil,
and for this reason all nations in the world have to keep a supply of
dollars with which to trade and succeed.
The benefit to America is that all imports can be paid for in dollars
without exchange rate risk. What is more, dollars can be printed so
long as oil can be produced - even if it is by Iran - and this wealth
will flow back to America So long as the dollar is the reserve
currency of choice - as is principally maintained by the 1973 OPEC
rule - then the economy of the United States is safe and the budget
deficit can be propped up. Now get this...
In 1998 the Euro was launched and began trading in the global
currency markets. By 2000 is had become strong against the dollar,
and the French (oh yes, the French) and some other European states
convinced Saddam Hussein that he could get more money in the
oil-for-food program by breaking the OPEC rule and trading his oil
for Euros - which he did. It wasnt long before Libya, Iran, Venezuela
and other big oil producers began to talk about doing the same. The
Russians too have now shown an interest in trading Euros, and their
biggest OPEC ally is Venezuela under Chavez. Just before we went to
war on Iraq again, the Iranians (the world's third biggest oil
producers) established 50% of their oil trade in Euros instead of
Dollars. Even Saudis are reconsidering the wisdom of staying by the
dollar 100% for oil, simply because it is so weak on the global
markets and oil prices are higher in real terms than ever before.

The status of the dollar as a global reserve currency has in the
space of a few years been seriously undermined, and the situation is
getting worse. Iraq may be back on dollars now they are under
control, but the Euro is getting stronger and the dollar weaker and
other nations are dropping their dollar stocks based on simple free
market economic interests. China - the world's fastest growing
economy - has cut its stock to - I believe - a mere $50 billion ('not much').
If oil prices stay high and the dollar stays as weak as it is,
oil-reliant and recession-hit large economies such as Japan may also
have to start ditching their bucks and dollar-denominated stocks to
buy into the euro.

What we risk having is not just a dollar recession, but a potential
collapse of the economy worse than was seen in the dust-bowl years of
the 1920s. And it is all about external market forces responding to
the overseas foreign policy (war and instability).

Surely this threat to the dollar alone justified the Iraq war? Why
didnt the allied governments come clean about it instead of
manufacturing stories about 'fighting for democracy' and 'terrorism'?
Our global image is now at its lowest ever - and unlikely to get any
better in the next 4-5 years.

I advise any investors to look at gold and the gold futures markets,
or shares in gold related blue chips. Or possibly Euros if you want
to destroy your own country's economy for a quick buck.

For some reason nobody seems to have realised that America is under a
greater threat than that from terrorism. By not opening our eyes to
the tough issues soon enough, or in the ignorance we are kept in by
our liberal-agenda media we have missed the greatest threat to our
wellbeing in three generations. Let me explain - it is vital we face
up to this NOW:

The dollar has been the principal global reserve currency since the
early 1970s when the value of America stopped being expressed in how
much gold there was to back up the currency. Kissinger negotiated a
highly beneficial treaty with the Saudis so that all OPEC oil was
traded in dollars alone. No economy can grow or thrive without oil,
and for this reason all nations in the world have to keep a supply of
dollars with which to trade and succeed.
The benefit to America is that all imports can be paid for in dollars
without exchange rate risk. What is more, dollars can be printed so
long as oil can be produced - even if it is by Iran - and this wealth
will flow back to America So long as the dollar is the reserve
currency of choice - as is principally maintained by the 1973 OPEC
rule - then the economy of the United States is safe and the budget
deficit can be propped up. Now get this...
In 1998 the Euro was launched and began trading in the global
currency markets. By 2000 is had become strong against the dollar,
and the French (oh yes, the French) and some other European states
convinced Saddam Hussein that he could get more money in the
oil-for-food program by breaking the OPEC rule and trading his oil
for Euros - which he did. It wasnt long before Libya, Iran, Venezuela
and other big oil producers began to talk about doing the same. The
Russians too have now shown an interest in trading Euros, and their
biggest OPEC ally is Venezuela under Chavez. Just before we went to
war on Iraq again, the Iranians (the world's third biggest oil
producers) established 50% of their oil trade in Euros instead of
Dollars. Even Saudis are reconsidering the wisdom of staying by the
dollar 100% for oil, simply because it is so weak on the global
markets and oil prices are higher in real terms than ever before.

The status of the dollar as a global reserve currency has in the
space of a few years been seriously undermined, and the situation is
getting worse. Iraq may be back on dollars now they are under
control, but the Euro is getting stronger and the dollar weaker and
other nations are dropping their dollar stocks based on simple free
market economic interests. China - the world's fastest growing
economy - has cut its stock to - I believe - a mere $50 billion ('not much').
If oil prices stay high and the dollar stays as weak as it is,
oil-reliant and recession-hit large economies such as Japan may also
have to start ditching their bucks and dollar-denominated stocks to
buy into the euro.

What we risk having is not just a dollar recession, but a potential
collapse of the economy worse than was seen in the dust-bowl years of
the 1920s. And it is all about external market forces responding to
the overseas foreign policy (war and instability).

Surely this threat to the dollar alone justified the Iraq war? Why
didnt the allied governments come clean about it instead of
manufacturing stories about 'fighting for democracy' and 'terrorism'?
Our global image is now at its lowest ever - and unlikely to get any
better in the next 4-5 years.

I advise any investors to look at gold and the gold futures markets,
or shares in gold related blue chips. Or possibly Euros if you want
to destroy your own country's economy for a quick buck.

Click to expand...

you're preaching to the choir as far as I am concerned...... I have been stating the same for quite some time now.....

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